PNB NPS Interest Rates 2024 – Open PNB NPS Account

National Pension Scheme or NPS is a retirement savings plan regulated by PFRDA. At present, you can visit any Punjab National Bank branch to register yourself under the PNB NPS. All your contributions to the NPS remain secure as the Central Record Keeping Agency records minute details of each subscriber. In this blog, we will walk you through a comprehensive guide on this scheme while highlighting all the associated details that you need to know. 

What is the Punjab National Bank National Pension Scheme?

The NPS PNB is one of Punjab National Bank’s value-added facilities that makes saving money for retirement much easier. Although these schemes generate profits from market-linked funds, at the end of the day you earn excellent inflation-adjusted returns. 

PNB NPS Scheme Interest Rates 2024

Here you can refer to the interest rates applicable to an NPS scheme by PNB:

Eligibility Criteria for PNB National Pension Scheme

These are some major criteria that you should fulfil to start investing in a PNB NPS account:

1. While submitting the NPS account opening application form, your age must be between 18 and 70 years.
2. You must be an Indian citizen living within the country or a Non-resident Indian (NRI)/ Overseas Citizen of India (OCI) to be eligible for the PNB NPS scheme. 
3. During the account opening stage, you should be able to submit all the valid KYC documents like an Aadhaar card/PAN card, etc. 
4. This NPS provision is not fit for Hindu Undivided Families or joint applicants. 

Note: You cannot apply for an NPS account on behalf of another person. 

Features of Punjab National Bank National Pension Scheme

The following pointers are a few salient features of the PNB NPS scheme:

1. The NPS PNB is administered and regulated by the PFRDA (Pension Fund Regulatory and Development Authority).
2. Throughout the tenure, you can track which of the eight allocated fund managers is managing your investment. Also, you can switch among them.
3. You can separately opt for the Active Choice Investment option when you intend to invest in a combination of funds. 
4. At present there are four investment fund options available such as Asset Class A (involves alternate instruments), C (is associated with corporate debt), E (constitutes equity investments) and G (Government security investments). 
5. Considering you want to adopt low-risk, you may also go for the Auto Choice Investment proposition. By selecting this, you can proportionately distribute your investments under the Asset Classes E, C and G as per the risk profile you pick. 
6. At the time of opening a PNB NPS, originally you have to select the ‘Tier I Account’ option. This account only allows partial withdrawals for limited reasons.
7. Later on, you may apply for a Tier II account. It is a voluntary account that enables free withdrawals as and when needed.
8. You are liable to contribute at least once a year to your NPS account until it reaches maturity. The minimum contribution for a Tier I account is ₹500 while that for a Tier II account is ₹1,000.
9. After maturity, you can withdraw 60% of the accumulated corpus as a lump sum. The rest 40% would be disbursed in the form of monthly pensions.

Tax Benefits For Punjab National Bank National Pension Scheme

Upon enrolling for the PNB NPS scheme, you can enjoy the following tax benefits:

1. Under Section 80CCD(1), contributions to your NPS account are considered deductible from your taxable income. The deduction bracket is limited to up to 10% of your gross annual income and cannot exceed more than ₹1.5 lakhs.
2. However, you may avail an additional tax exemption of up to ₹50,000 under Section 80 CCD (1B).
3. All partial withdrawals are tax-free.
4. While withdrawing 60% of the maturity corpus you won’t be required to pay any tax.
5. Annuity payments after your retirement will be added to the total income and thus subject to deductions as per the income tax slab rates. 

Therefore, the scheme is undoubtedly the best possible way to save for your retirement and is simultaneously tax-effective. 

How to Invest in the Punjab National Bank NPS Scheme?

You can invest in your Punjab National Bank NPS account both by visiting a branch or via the online method. Here, we have described both the procedures in detail:

1. Via Home Branch

Follow these steps to accomplish the task successfully:

• Step 1: Visit the nearest branch. As all PNB branches serve as Point of Presence Service Providers (POP-SPs), you won’t face any trouble while investing.
• Step 2: Ask for a subscriber registration form and fill out the necessary details. 
• Step 3: Submit the list of documents mandated by the bank.
• Step 4: Make the minimum investment to start your PNB NPS account. 

Once your NPS account is active, the bank assigns a Permanent Retirement Account Number (PRAN) to you.

2. Via Online

The online method of NPS registration has been described below:

• Step 1: Visit the official website of Punjab National Bank and click on ‘Subscriber Registration: Click Here’.
• Step 2: You will be redirected to the sign-up page of NSDL. Here, navigate to the ‘Registration’ button and click on it.
• Step 3: Proceed to add all the necessary details and enter your primary contact number and email address. 
• Step 4: Select any one registration mode – via Aadhaar verification/PAN card verification. Depending on the option you select, you must upload the respective scanned document.
• Step 5: Complete the initial transaction to instantly activate your PNB NPS account. 

Documents Required for Punjab National Bank NPS Scheme

Irrespective of whether you prefer to open a PNB NPS either via an online or offline channel, you have to submit these documents:

1. ID proof documents (Aadhaar card, Passport, Driving Licence, Voter ID card)
2. Age-proof documents (Birth Certificate, School Leaving Certificate)
3. Address proof papers (Electricity bill, Gas bill) 
4. A recent passport-size photograph

Also, you have to provide a scanned copy of your PAN card along with a cancelled cheque if you choose to open your NPS account online. 

Things to Know About Punjab National Bank NPS

Ensure to keep in mind these vital factors before opening a NPS account with Punjab National Bank:

1. You have to pay an initial subscriber registration charge of ₹200.
2. For the initial contribution, the service charge can be up to ₹25,000 for both individual as well as corporate subscribers.
3. For subsequent transactions, all subscribers have to bear 0.50% of the contribution as a service charge.

Final Word

It can be a wise decision to start a PNB NPS account for those planning to save for retirement. After 60 years, this investment serves as a pension alternative and you may also redeem 60% of the corpus without any questions asked. 

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.